Home Prices Highest Since 2006

There are still more signs of a housing market recovery coming to light, with the most recent being the biggest rise in home prices since 2006. January brought a gain of over 8%, according to the S&P Case-Shiller Index, which tracks the 20 major housing markets across the country. This is the highest level we’ve seen since the housing bubble burst and sent everything into a tailspin. While prices are up, the number of new homes sold decreased slightly, by 5%, but that still represents an increase of 12% from one year ago.

The Case-Shiller report proves that the recovery is wide spread because the increase was seen in every market, aside from Detroit, which continues to struggle. The markets with the biggest gains are those that were the hardest hit by the bubble burst. Experts agree that all these signs point to a stabilization in the housing market in general – a renewed demand for new housing, increased confidence in the economy, increased household wealth and a reduction in the number of people who are underwater on their homes.